Another move to take GST off food
Wednesday 25th February 2009, 3:00PM GMT.
THE battle to exempt food and household energy from GST is going back to the States.
Last September a tied vote on Deputy Carolyn Labey’s proposition meant that the 3% tax stayed on food and domestic energy.
But the Deputy has lodged the proposition again to exempt all foods that are exempt in the UK from VAT, as well as household electricity, oil and gas.
‘It will keep on coming back because there are some people who simply do not agree with taxing life’s essentials like food and domestic energy,’ said Deputy Labey. ‘The argument has not changed. In fact, it’s probably stronger now in the light of the unprecedented economic crisis.’
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GST is that it was introduced, of necessity, to replace last tax receipts from the finance industry. The consequence of GST, is the taxation of both advantaged and disadvantaged alike. The poor are being taxed in order to support tax avoidance by the rich.
Proportionate taxation would see a high band of income tax for those best able to pay taxation. The poor being taxed to support the rich is disproportionate and perverse. Get rid of GST.
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Well done Carolyn – attagirl!
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Well done Deputy Labey! Food should not be taxed as it is a basic and any tax hits the lowest paid hardest. Let hope the states see sence at long last. Don’t hold your breath!
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This is going to an interesting test of the resolve of the CoM and the balance of the new House.
If I were a betting bean I would lay odds that Deputy Labey will win by a few votes.
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Dept. Labey has no understanding of Jersey politics if she believes GST will be removed off food, this most fundamental of human rights. It suits and serves the political machine to keep this punitive regime in place.
The alternative, to tax the wealthy and corporate bodies is frankly unthinkable to the Council of Ministers and would damage the reputation of the island and this counts for more than the welfare of those on lower incomes.
Morality is a luxury that in the 4th wealthiest society in the world we can barely afford.
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gst … not fair, not needed.
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Food should not be subject to GST – I now live in Canada where they also pay GST aswell as a provincial services tax.However,unlike Jersey food is exempt and so is children’s shoes and clothes.However,I fear a squadron of pigs flying overhead is more likely than GST being taken off food in Jersey!
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food is dear enough without this added tax.fair play should compare our food prices with uk as they did in the past instead of just using our shops,that way we can seen how much more we are betng charged
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Well done Deputy Labey – a States Member who realises what an impact GST has on the ordinary working folk in regards to the necessities of day to day living. Good luck, may common sense prevail.
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Well, she’s certain of 17 votes in favour anyway.
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Yeah right. As if thats going to happen.
Does’nt anyone find it strange that we publicly still dont know exactly how much the States have cashed in on GST even though its been since May 08? Just a little thought..
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Lets target the “needy” and stop this waste of time that will only make food cheaper for all including the rich.
Headline grabbing, maybe! sensibe, no way
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gst is not fair the people that are on low incomes will never have a penny for any luxuries and the high earners wont even notice if it goes up (oh and what a surprise states workers fall in the bracket of the high earners)
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Not Life Enriching
Can’t you see that forcing ‘the rich’ and companies away from Jersey will only lead you and everyone else to paying much higher levels of GST than we do presently? Once tax receipts have fallen from 1(1)ks leaving (who contribute millions), and personal taxes fall because companies which employed have left the Island, how do you propose to pay for health and education etc?
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Mark
The poor should be seeing increased levels of income support to take account of GST so they will not be affected. I’m not saying they have it easy – but if you want everyone to have equal wealth and want to live in a place that doesn’t encourage you to better yourself I suggest you move to a socialist state.
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good luck carolyn hope you win
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According to tonights JEP Terry Le Sueur is against the proposed GST exemptions and says that the States should look for savings not reduced revenue. Unfortunately the States Departments have a proven track record of being totally incapable of making true savings so that idea is not going to work.
Besides – Terry is against the move so that means that we can expect 30 odd die-har old boys to vote with him, being the sheep that they are, and 17 or so new boys to vote for the move.
Defeat is certain!
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Don’t follow the UK VAT system!
I am not against removing GST from food and fuel, but I think Ms Labey’s proposition is flawed. She is proposing to remove GST from food using the same system as the UK VAT system. The UK VAT system is known for being one of the most cumbersome and complicated tax systems in the world. It led the whole “is a jaffa cake a cake or a biscuit” debate since one is considered a “luxury” item and is therefore subject to VAT.
Jersey should not inherit this old complex system that the UK have to live with. Just keep it simple!
Just take it off all food, or leave it as it is!
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joker,
Charging wealthy residents a fairer amount in tax, as well as companies will not “force” them to up sticks and move off Jersey.
The amounts that most finance groups make in Jersey is staggering, so we would need to take literally billions before that would be reviewed. What makes ordinary people angry and see the situation as iniquitous is the paltry amounts generated from the wealthy or companies by comparison to those on lower incomes.
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Come on all you folks,
GST is needed!!! We are in trouble as it is…
The problem is that everyone only thinks about them only.
Its time we start thinking about the Island as a whole.
Keep GST, raise it to 5% and for the Islands sake lets hope it can get get back to normal.
GST is better than England running the Island, which will see more tax then we have now.
Let the Island Survive people.
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Does Deputy Labey know the meaning of democracy. The States have voted, she does not have any new argument. Why can she not accept defeat. Vote catching springs to mind.
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£8M from the richest 100 inhabitants says it all really doesn’t it? I believe everyone should pay a fair share unfortunately over here those running the place prefer to tax the very poor and needy to avoid upsetting the super rich who may, or may not, leave if they paid a bit more. As far as I am concerned I would prefer £8M less in the kitty and 100 less people over here. This would have the added benefit of bringing house prices down and prices of goods etc as too many rich people push up prices for all.
Certain people are making vast sums from Jersey it is about time more went to where it should i.e. helping the rest share in these massive profits. Yes the rich invest money but without labour they wouldn’t make a penny so it is about time things were put more into balance as far as I am concerned. Taxes should be about helping those worse off not helping those already very well off become even richer. This is immoral and unjust. As far as I am concerned this is why captialism is doomed to failure, in the long run, as its competitive, greed driven culture reduces all in its wake to a poorer life both monetarily, environmantally, mentally and physically. Yes a few will do very well out of it but the rest well they might as well forget it. Just look at the way things are going in this world down hill fast!
GST in my opinion punishes those for being poor and rewards those for being rich. It is unliked and unneeded if a fair balanced tax structure was introduced. This just proves whose side the states are on, as far as I am concerned, you mustn’t upset the rich but its fine to upset the poor.
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I believe at this stage the removal of GST on food would make very little difference to the shelf price. The recent reduction in the rate of VAT in the UK has not necessarily been passed on to the consumer on small items.
GST was to be kept simple at the outset, and in its current form, it is very straighforward. VAT is an absloute nightmare to administer in the UK e.g. motorcycle helmets are zero rated, yet child car seats are not. Plain buscuits: zero, choclolate: that’s 15%, please.
Keep it simple – GST is here to stay and lets just move on.
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Next they will tell us to eat less!!
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The retailers are equally guilty of making food more expensive all the time, I am sure few of them could prove that only 3% was added when GST was introduced, more like 4/5%! But thats not my point… have you considered the implications of removing GST from foods alone… Think about this lot annually ~ I would imagine you are going to need an office of GST exclusion management so additional States senoir manager = £60k, at least two department managers = £80k (£40k each) and then the accountants to monitor all the companies P+Ls and order books to ensure that only food was getting into the island un taxed = £150k (£30k each) harbour inspection officers = £60k (£30k each) back office support say another two people = £46k (£23k each) and then you get into the logistics of it… office area £200k, SS contributions etc… £100k company vehicles £50k. Total £696k per year… so we can remove GST from food and then there is an arguement there to increase GST to 4 or 5% to cover its own costs? That is what will be acheived with this lot!!!
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